Question

What payment 7 months from now would be equivalent in value to a $3,300 payment due 23 months from now? The value of money is 2.7% simple interest. Round your answer to 2 decimal places. Show all work and how you arrive at the answer..

294

likes1470 views

Fred

4.4

62 Answers

Solution:
For simple interest, A=P\left(1+rt\right) For payment due 23 months, 3300=P\left(1+\left(0.027\right)\left(23\right)\right) P=\frac{3300}{1+\left(0.027\right)\left(23\right)} P\approx2035.78 For payment due 7 months, A=2035.78\left(1+\left(0.027\right)\left(7\right)\right) A\approx2420.54
Answer: $2,420.54

Frequently asked questions (FAQs)

Math question: In a circle with radius 5 cm, if angle AOB is 60°, what is the length of arc AB?

+

What is the formula to find the area of a regular hexagon with side length 's'? (

+

What is the volume of a cylinder with radius 4 and height 7?

+

New questions in Mathematics